[USER]

I turned 50 last year. I’m married, with two kids—both in high school. One will graduate this year, the other next year. We live in a VHCOL —SFBA. I’d really appreciate your input on whether I can realistically retire.

Our situation:
Annual income between $400K–$450K, depending on bonuses (my salary is ~40%).

401K – ~1.2M (75/25)
Other brokerage – ~0.5M (80/20)

Real estate primary + rental ~3M (mortgage left ~0.5M with 2.75% rate), almost 0 cashflow from the rental but it pays fully for itself.

~80K in cash emergency fund.
No other debt (we drive older cars) and we’re fairly frugal, though we do spend ~$20K a year on travel.

The plan is for the kids to graduate, attend community college, and then transfer via TAG to a local university.

Once they graduate, we plan to sell our properties and move to MCOL—possibly Florida.

My spouse doesn’t plan to retire before we move and currently covers medical and other insurance costs.
The issue is, I just don’t want to work anymore.

My company is okay—not toxic or anything—and the pay is fine (though lower compared to others in the Bay Area). But something shifted in me after turning 50.

That said, I’m a software developer, and living here while not working feels like I’d be walking away from easy money—especially since we likely won’t move for another 4–5 years.

What would you do?

[Tim]

you did not say what you will do if you are not working. I would figure that out first. Maybe go part time and see if this is really what you want.

Personally, I think you are a little low on savings, investment at this time.

Would like to see that over 2.0 mil.

[Cynthia]

I’d quit and spend time with my children, but I took the absolute opposite life path as you.

I traveled around the world throughout my 20s and 30s (stopping to work of course but only to save enough to hit the road again), then spent my late 30s-early 50s raising my children, something I absolutely don’t regret despite the financial hole it left me in after divorce.

Mid 50s I started my own business online (I live in a field in Italy where job opportunities are slim other than online) and now at 59 am launching another business, unrelated to the first ~ I’m excited to have the kids all away at Uni and no family obligations so I can just focus on my businesses.

If I were you, I’d spend time with my children before they went to Uni.

From the sounds of your plan, you’re pretty set, especially once you sell the properties.

Although we don’t know your annual estimated spend in retirement or what your husband brings in.

You could also always quit & mentor given you have such a valuable skill set.

[Chris]

Financially you are not ready to retire. But if you move to a lcol area and sell your houses then you might make it work.

The problem is that you have no experience living in a lcol area and living on a lower income.

Can you increase your savings rate currently?

[Steve]

It’s hard to walk away from half a million of income. So, unless you know what you’re waking towards – hobbies, travel, volunteering – I’d work till I sort out the goals.

But don’t delay too much. Health can deteriorate quickly and you won’t be able to do what you planned to.

[Aaron]

To me the can you retire is all about
1. What are your expenses for the lifestyle you plan to have

2. Wha income do you have to support that

3. Does retiring now create a situation where in the future you won’t have enough for retirement

If number 2 is higher than number 1 without sacrificing 3 then your good to retire.

As long as your assumptions in number 2 make sense.

[Kim]

Do what makes you happy. Having the ability to not work is a gift that should not be traded for easy money.

You have worked hard to know that your change will not negatively impact your family.

Enjoy!

[Krisa]

The shift was likely hormone related. Consider visiting with your doctor first before making any big financial decisions.

Our expenses with kids in HS were easy compared to the college expenses.

I think you’ll need your income and to up your savings.

[Menard]

I’d work longer so I can max out my tax deferred 401K including catch up contributions then retire the year you turn 55 and sell everything before moving to Florida.

[Kim]

Part time or consulting work. What is it about your job you don’t want to do anymore? Do you want more time for yourself during those working hours for other pursuits?

If you’re on his ins maybe you could drop down to 20-30 hours or take fridsys off.

Maybe you’re feeling the burnout.

[Rosemarie]

I would be concerned that you have only saved 4x your earnings (1.7M). Since you did not list expenses but are at least age 40, I would question whether you would be able to live comfortably on 40% less.

Common rule of thumb for retirement is 25x your expenses.

I would pay off the houses before trying retirement.

[Tony]

I’d find a middle ground and change employment to something that is more meaningful and leaves you fulfilled.

Sometimes just having a purpose and more agency over how and where you work at a reduced salary is better than stepping away from work altogether.

[Nicole]

I would start by using your income to pad the brokerage account and learn to live off your husband’s income for a year.

This will pad your savings (which seems low for salary and with a safety net get your budget down) and see if it is doable down the road.

The great thing is you have a huge shovel compared to most people.

[Chrissy]

I’d work a year and pay off the rental with you brokerage to see that cash flow actualize.

How much would you be making monthly once those are fully paying?

[Author]

Posts